AMD made an announcement of their plan to sell and lease their Singapore Facility in a ‘conditional put-and-call option agreement’ with HSBC Institutional Trust Services, a decision not so different from the time they’ve done the same with the Lone Star Campus in Austin, Texas with Southwest Parkway Holdings.
AMD made these decisions in an effort to reduce investments and capital. The agreement that AMD made with their Lone Star Campus earned them about $164 Million in cash, according to a report.
In a way, AMD hopes that the boost in income will help them by to reduce investments and capital in non-core part of the business such as real estate. It should be noted however that AMD does have a new design center in Hyderabad. As per agreement, AMD will still be operating in the portion of the Singapore facility for 10 years under a sub-lease agreement. As of now, the company needs approval from Singapore’s JTC.